FY 2002-03 CORRECTIONS BUDGET - S.B. 1102 (S-1): SENATE PASSED

Senate Bill S.B. 1102 (S-1 as passed by the Senate)

Committee: Appropriations

FY 2001-02 Year-to-Date Gross Appropriation $1,682,754,400
Changes from FY 2001-02 Year-to-Date:
1. Prison Capacity. The budget includes $10,917,700 of full-year funding for beds opened in FY 2001-02 and $10,152,100 for reopening housing units at Jackson Maximum and Michigan Reformatory and double bunking two facilities. It decreases appropriations $1,924,300 by postponing the use of two drop-in units and carrying forward funds from FY 2001-02. $19,145,500
2. Annualized Savings. The Governor and Senate recognize $15,091,800 in annualized savings from facility closings and staff reductions in E.O. 2001-9. ($15,091,800)
3. Other Operational Adjustments. The Governor and Senate recognize increased federal revenues for housing federal inmates ($58,600) and tracking prisoners' social security numbers ($100,000). The budget shifts $1,694,300 from federal funds to GF/GP to compensate for decreasing revenues from the State Criminal Alien Assistance Program. The budget includes increased use of federal Violent Offender Incarceration/Truth In Sentencing (VOITIS) funds for contract adjustments of $83,300 for the Michigan Youth Correctional Facility (MYC) as well as a funding shift of $196,100 from VOITIS funds to GF/GP for MYC administrative costs. It also recommends a third-year pay step funding increase of $1,987,800 at Pugsley Correctional Facility, and a $2,703,100 decrease to correct the Jackson Food Production Kitchen intradepartmental transfer. ($473,400)
4. Field Operations. The budget removes one-time costs of moving the Detroit office ($418,500) and recognizes increased collections of State and local tether revenue ($90,000). ($328,500)
5. Health Care. The Governor and Senate recommend increases for pharmaceutical costs ($3,960,400) and estimated increases in the managed care contract (3,299,700), up for renewal in April, 2003. The budget also includes $139,200 for full-year costs of managed care for the additional unit opened at Thumb Correctional Facility in October, 2001. $7,399,300
6. Fee Increases. The Governor and Senate include the full year effect ($343,800) of increased parole/probation oversight fees changed in E.O. 2001-9. The budget replaces $175,000 of GF/GP and adds $168,800 to parole and probation services. The new fee structure requires further legislation to make the change permanent. $168,800
7. Economic Adjustments. $17,550,300
8. Other Changes. The budget decreases appropriations $363,900 to reflect the end of 1997 early retirement payouts and $1,798,200 in staff reductions to pay for employee economics. It recognizes the $1,500,000 full year effect of the County Jail Reimbursement Fund Fee implemented by 2001 PA 213 as a shift from GF/GP to state restricted funds, as well as the $4,500,000 supplemental increase from this source not yet passed by the legislature. $2,337,900
9. Comparison to Governor's Recommendation. The Senate bill appropriates $0 Gross and $0 GF/GP over the Governor's recommended budget.
Total Changes $30,708,100
FY 2002-03 Senate Gross Appropriation $1,713,462,500
FY 2002-03 CORRECTIONS BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 2001-02 Year to Date:
1. Deletions. The Governor recommended and the Senate concurred on a number of deletions regarding:
  • Quarterly reports of which reports have been submitted via the Internet (Section 208).
  • Special Alternative Incarceration line items and Prison line items consolidation savings (Section 214).
  • Clinical complex consolidation savings (Section 214a).
  • Milk and milk product production and distribution (Section 217).
  • Academic and vocational programming (Section 219).
  • Restricted fund balances, projected revenues, and expenditures (Section 220).
  • Implementation and evaluation of substance abuse programs (Section 306).
  • Parole Technical Violator Alternatives (Section 405).
  • Training for Field Operations employees who conduct drug tests (Section 606).
  • Children's Visitation programs (Section 1002).
  • Self Rehabilitation and Prison Build programs (Section 1007).
  • Cognitive Restructuring programs (Section 1008).
2. Restored Language. The Senate restored a number of sections which the Governor's budget had eliminated regarding:
  • Privatization (Section 207).
  • Purchase of American and Michigan goods and services (Section 209).
  • Contracts with businesses in deprived and depressed communities (Section 210).
  • Michigan Youth Correctional Facility quarterly reports (Section 215).
  • Michigan Youth Correctional Facility contract monitor (Section 216).
  • Staff/Prisoner Ratio reports (Section 404).
  • Parole/Probation Officer 90:1 Workload (Section 601 (1)).
  • Office of Community Corrections (Sections 203, 701,702,703,708,711).
  • Health Care Contracts (Section 902 (1) and (2)).
  • Hiring sufficient numbers of Nurses (Section 903).
  • Privatizing Pharmaceutical Services (Section 904).
3. Hiring Freeze. The Governor and Senate propose that Section 205(2) be changed so as to require reports on the exception to the hiring freeze quarterly rather than every month.
4. Substance Abuse Programs. The Executive budget deleted Section 302(2) requiring a report on Substance Abuse expenditures. The Senate added Sections 302 (2) and (3) establishing legislative intent that the funds in this line be fully expended for this purpose and requiring a revised report on Substance Abuse programing and expenditures.
5. Community Jail Reimbursement. The Governor's recommendation changed the State reimbursement to a standard per diem of $43.50 per offender for up to one year total. Currently, the per diem for the first 90 days is $47 for counties with populations higher than 100,000 and $42 for those with 100,000 or less; then, after 90 days, the per diem drops to $40 for up to one year in all counties. The Senate concurred. (Section 706)
6. Department of Technology. The budget adds Sections 259 and 260 regarding the use of appropriated information technology funds.

Date Completed: March 20, 2002 - Fiscal Analyst: B. Wicksall